Energy Storage as a Service (ESaaS)
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Energy storage as a service (ESaaS) allows a facility to benefit from the advantages of an energy storage system by entering into a service agreement without purchasing the system. Energy storage systems provide a range of services to generate revenue, create savings, and improve electricity resiliency. The operation of the ESaaS system is a unique combination of an advanced battery storage system, an energy management system, and a service contract which can deliver value to a business by providing reliable power more economically.


History

Scott Foster, Energy Director of the United Nations Economic Commission for Europe, is one of the leading global advocates for energy as service. He coined the term 'iEnergy' to propagate a annual/monthly subscription fee for energy, rather than the present-day commodity-led ''pay'' ''per'' ''kilowatt'' of electricity system. Foster believes a service-led system would put the onus on the energy supplier to improve reliability and offer the best possible service to customers. The term ESaaS was developed and trademarked by Constant Power Inc., a Toronto-based company, in 2016. The service has been designed to work in the
North America North America is a continent in the Northern Hemisphere and almost entirely within the Western Hemisphere. It is bordered to the north by the Arctic Ocean, to the east by the Atlantic Ocean, to the southeast by South America and the Car ...
n open electricity markets. Notable other companies offering Energy Storage-as-a-Service includ
GI Energy
, AES Corporation, TROES Corp., Stem Inc, and Younicos.


Components

ESaaS is the combination of an
energy storage Energy storage is the capture of energy produced at one time for use at a later time to reduce imbalances between energy demand and energy production. A device that stores energy is generally called an accumulator or battery. Energy comes in ...
system, a control and monitoring system, and a service contract. The most common energy storage systems used for ESaaS are lithium-ion or
flow Flow may refer to: Science and technology * Fluid flow, the motion of a gas or liquid * Flow (geomorphology), a type of mass wasting or slope movement in geomorphology * Flow (mathematics), a group action of the real numbers on a set * Flow (psych ...
batteries Battery most often refers to: * Electric battery, a device that provides electrical power * Battery (crime), a crime involving unlawful physical contact Battery may also refer to: Energy source *Automotive battery, a device to provide power t ...
due to their compact size, non-invasive installation, high efficiencies, and fast reaction times but other storage mediums may be used such as
compressed air Compressed air is air kept under a pressure that is greater than atmospheric pressure. Compressed air is an important medium for transfer of energy in industrial processes, and is used for power tools such as air hammers, drills, wrenches, and o ...
, flywheels, or pumped hydro. The
batteries Battery most often refers to: * Electric battery, a device that provides electrical power * Battery (crime), a crime involving unlawful physical contact Battery may also refer to: Energy source *Automotive battery, a device to provide power t ...
are sized based on the facility's needs and is paired with a power inverter to convert the DC power to AC power in order to connect directly to the facility’s electricity supply. ESaaS systems are remotely monitored and controlled by the ESaaS operator using a Supervisory Control and Data Acquisition (SCADA) system. The
SCADA Supervisory control and data acquisition (SCADA) is a control system architecture comprising computers, networked data communications and graphical user interfaces for high-level supervision of machines and processes. It also covers sensors and ...
communicates with the facility's Energy Management System (EMS), Power Conversion System (PCS), and Battery Management System (BMS). The ESaaS operator is responsible for ensuring the ESaaS system is monitoring and responding to the facility’s needs as well as overriding commands to participate in regional incentive programs such as coincident peak management and demand response programs in real time. The facility benefiting from the ESaaS system is linked to the ESaaS system operator through a service contract. The contract specifies the length of the service term, payment structure, and list of services the facility wishes to participate in.


Services

ESaaS is used to perform a variety of services including: ; Coincident Peak Management :During times of high regional demand, Independent Service Operators (ISOs)/Regional Transmission Organizations (RTOs) offer incentives for facilities to reduce or curtail their load. ESaaS allows a facility to isolate or offset their load during these high regional demand periods to decrease demand from the electricity grid to benefit from the incentives. The system is designed to work in conjunction or independent of facility curtailment. ;
Demand Response Demand response is a change in the power consumption of an electric utility customer to better match the demand for power with the supply. Until the 21st century decrease in the cost of pumped storage and batteries electric energy could not be ...
: ISOs/RTOs offer facilities payment for curtailing their energy demand when dispatched by the grid operator. ESaaS allows facilities to participate in these programs by off-setting all or a portion of a facility load during a
demand response Demand response is a change in the power consumption of an electric utility customer to better match the demand for power with the supply. Until the 21st century decrease in the cost of pumped storage and batteries electric energy could not be ...
occurrence. A facility can benefit from the incentive without interrupting their facility operation. ;
Power Factor Correction In electrical engineering, the power factor of an AC power system is defined as the ratio of the '' real power'' absorbed by the load to the ''apparent power'' flowing in the circuit. Real power is the average of the instantaneous product of v ...
:During charging and discharging, active and reactive power may be balanced prior to supplying a facility. By balancing the amount of active and reactive power to a facility, the power factor and resulting facility electrical efficiency may be improved. This improvement may reduce a facility's monthly peak demand charge. ;
Power Quality Electric power quality is the degree to which the voltage, frequency, and waveform of a power supply system conform to established specifications. Good power quality can be defined as a steady supply voltage that stays within the prescribed range, ...
:ESaaS actively monitors electricity supply to a facility. In times of intermittent power supply, ESaaS acts as an
uninterruptible power supply An uninterruptible power supply or uninterruptible power source (UPS) is an electrical apparatus that provides emergency power to a load when the input power source or mains power fails. A UPS differs from an auxiliary or emergency power system ...
(UPS) to ensure uninterrupted, reliable power supply to eliminate unexpected fluctuations. Fluctuating and intermittent power affects equipment operation which may cause costly delays and defects in production. ;
Back-up Power An uninterruptible power supply or uninterruptible power source (UPS) is an electrical apparatus that provides emergency power to a load when the input power source or mains power fails. A UPS differs from an auxiliary or emergency power syste ...
:If the electricity grid experiences a power outage, ESaaS offers a
back-up power An uninterruptible power supply or uninterruptible power source (UPS) is an electrical apparatus that provides emergency power to a load when the input power source or mains power fails. A UPS differs from an auxiliary or emergency power syste ...
service to continue powering all or a portion of a facility's electricity demand. Depending on the size of the ESaaS installation, ESaaS may maintain facility operation for the duration of a grid failure. ; Peak Shaving :ESaaS actively monitors a facility’s energy profile to normalize the electricity draw from the electricity grid. The ESaaS system stores energy when the facility demand is lower than average and discharges the stored energy when the facility demand is higher than average. The result is a steady draw of electricity from the electricity grid and a lower monthly peak demand charge. ; Energy Arbitrage :ESaaS actively monitors local electricity spot prices to store energy when the price is low to be utilized when electricity prices are high. This is commonly referred to as
arbitrage In economics and finance, arbitrage (, ) is the practice of taking advantage of a difference in prices in two or more markets; striking a combination of matching deals to capitalise on the difference, the profit being the difference between the ...
. The net different in price results in cost savings. ; Market Ancillary Services :ESaaS enables facilities to participate in the local ISO/RTO markets to provide services such as frequency regulation,
operating reserve In electricity networks, the operating reserve is the generating capacity available to the system operator within a short interval of time to meet demand in case a generator goes down or there is another disruption to the supply. Most power sys ...
, and dispatchable generation. By participating in the local market, facilities can generate revenue through the ESaaS contract. ; Transmission Support :ESaaS may provide services to ease congestion and constraint on electricity transmission networks by storing energy during heavy transmission periods to be released during less congested periods. The use of this service can prolong the life of infrastructure and defers system upgrades.


Markets served

ESaaS primarily benefits large energy consumers with an average demand of over 500 kW, although, the service may benefit smaller facilities depending on regional incentives. Current early adopters of ESaaS are
manufacturers Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy. The term may refer to a range ...
( chemical, electrical, lighting, metal, petrochemical, plastics), commercial ( retail, large offices, medium offices, multi-residential,
supermarket A supermarket is a self-service Retail#Types of outlets, shop offering a wide variety of food, Drink, beverages and Household goods, household products, organized into sections. This kind of store is larger and has a wider selection than earli ...
s), public facilities ( colleges, universities, hotels, hospitality, schools), and resources ( oil & extraction, pulp & paper, metals & ore,
food processing Food processing is the transformation of agricultural products into food, or of one form of food into other forms. Food processing includes many forms of processing foods, from grinding grain to make raw flour to home cooking to complex industr ...
,
greenhous Carl Greenhous (born October 28, 1972) is a Canadian retired professional ice hockey player. He played professionally in England and in the minor leagues of North America. Greenhous was born in Ottawa, Ontario. While a keen amateur, Greenhous' ...
es).


Benefits


System benefactor does not require installation capital

To participate in an ESaaS service, the installation system benefactor does not require any capital outlay. Upon installing an ESaaS service, the facility sees immediate savings and/or revenue generation. Initial capital is often a hurdle for facilities to adopt an energy storage system since in most cases, the payback period of an energy storage system is 5–10 years.


System operated by a third-party system operator

ESaaS is a contracted service that is automatically controlled by a third party. This eliminates responsibility for the facility to allocate resources to manage their energy profile allowing a facility to operate their core business. The system operators have knowledge of local electricity sectors that continually monitor and update system protocols as regional markets change. The information is used to optimize the value realized by the ESaaS system while still meeting facility requirements.


Environmental

For most ESaaS services, energy is stored during night time, off-peak hours when energy production is created from non-carbon emitting sources. The energy is then used to offset the required carbon emitting production during peak-times. The load shifting capability provided by ESaaS displaces heavy emitting generation requirements.


Pricing

ESaaS contracts may be structured as a cost sharing model or a fixed monthly price over a contracted term. Cost sharing models share the economical benefits of ESaaS after they are realized by the customer. The fixed price is based on potential economic benefit and applicable programs in the region of deployment. The ESaaS contract price is always less than the economic value provided by the service to ensure the client retains a net positive value through the service.


References

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